Problem regarding the corrected balance sheet

Reference no: EM13953408

Corrected Balance Sheet

Pete is the president of Island Enterprises. Island Enterprises began business at the beginning of the current year. The company's controller is out of the country on business. Pete needs a copy of the company's balance sheet for a meeting tomorrow and asks his assistant to obtain the required information from the company's records. She presents Pete with the following balance sheet. He asks you to review it for accuracy.

Island Enterprises Balance Sheet

For the Current Year

Assets Liabilities and Stockholders' Equity

Accounts payable	$ 29,600	Accounts receivable	$ 23,200
Building and equipment	177,300	Supplies	12,200
Cash	14,750	Capital stock	100,000
Cash dividends paid	16,000	Net income for the year	113,850

Required

1. Prepare a corrected balance sheet.

2. Draft a memo explaining the major differences between the balance sheet Pete's assistant prepared and the one you prepared.

Reference no: EM13953408

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